Corsair Sees Big Dip in PC Gaming Gear Sales Amid Inventory, Demand Troubles
Demand for PC parts and accessories saw a big dip in the last year, according to the latest earnings report from peripheral maker Corsair, though things may improve in the coming quarters as supply chain issues ease and consumer activity picks up, it says.
On Thursday, the company reported(Opens in a new window) that its Q2 net revenues fell by close to 40% year over year. Corsair blames the sagging demand on “macroeconomic headwinds,” including the war in Ukraine prompting European users to pull back on spending.
In addition, the company’s retailers are still trying to sell off existing inventory, which is causing them to delay ordering new Corsair gear.
The sharp decline in revenue occurs a year after Corsair saw soaring sales due to “pent-up demand” for PC building and consumers spending their economic stimulus checks. The market for PCs has since cooled amid high inflation and fears of an economic recession.
“We spent much of the second quarter helping our channel partners reduce inventory, which was ordered on long lead times, and when the inventory arrived, the consumer demand in the first half was less than forecasted,” Corsair CEO Andy Paul said in an earnings call.
Still, consumer spending for PC parts remains higher than before the pandemic, he added. Furthermore, the company has also started to see “a reduction in supply chain lead times, shipping costs coming down, and consumer activity picking up.”
He attributed the returning demand to the end of the GPU shortage. "Most of this is because graphics cards have now come down to MSRP [Manufacturer's Suggested Retail Price], and in some cases, below MSRP,” Paul added.
Corsair also expects the market to improve especially when Intel, AMD, and Nvidia launch
Read more on pcmag.com
